Which statement describes the Catastrophic Coverage stage in Part D?

• A. The member will pay the full price for all Part D drugs.
• B. The member will pay a fixed copayment per drug regardless of tier.
• C. There is no Catastrophic Coverage stage.
• D. The Catastrophic Coverage stage is when the member will pay nothing for covered Part D drugs for the remainder of the plan year.

Answer: (D)

Catastrophic Coverage is the final stage of Part D cost sharing, kicking in after you reach the yearly out‑of‑pocket threshold. In this stage you still have to share some of the cost for each prescribed drug, not pay nothing. Typically you’ll owe a small fixed copayment per prescription or 5% of the cost, whichever is greater, for all covered Part D drugs for the rest of the plan year, while the remainder is covered by the plan. This design keeps drug costs from spiraling while ensuring you don’t bear the full burden as prices rise.